Strong indicators for Peru construction

29 December 2010

Peru’s Minister of Finance Ismael Benavides has again said he expects Peru’s economy could expand by 9% in 2010.

Benavides said positive indicators included cement production and electricity consumption levels. Earlier this month the latest figures from Peru’s national statistics agency, the INEI, showed gross domestic product had expanded 8.31% in October over the same month a year ago as construction and manufacturing continued to drive economic expansion.

The INEI said the construction sector expanded 10.71% in October, while activity in the manufacturing sector grew 14.66% in the same period and electricity and water production increased 8.22%.

The latest figures from Peru’s National Association of Cement Producers show cement production rose 16.21%, to 7.55Mt in the January to November period.

In the same interview Benavides said there was room for more growth in Peru, but warned, however, of future "bottlenecks" to expansion, including a shortage of "human capital" such as technically qualified professionals, poverty levels and infrastructure shortages. Benavides said Peru needed to prepare to grow at rates of more than 7% to overcome these problems.

Peru’s Central Reserve Bank says it expects growth of 6.5% in 2011, while 2012’s GDP should be 6.0%. The bank sees 2010’s growth at 8.8%.